Trader

College Majors Business Major
1

<p>Please answer these questions, I would pretty much appreciate your help!
1. Is trading all about gaining capital appreciation? Buying and selling short?
2. I heard some people say that there are traders that make $ 1 000 000 a year for their firms. I wonder if that 1 mil is that big of a deal because it is just a tiny piece of the entire pie (billion dollars) that a firm makes a year!!!!</p>

2

<ol>
<li>no, trading is about market making. they buy stock and get the salesman to sell it at a higher price. they do not invest in stocks for long periods of time.</li>
<li>a million dollars is nothing compared to what some of the best traders/hedge fund people make. but of course they are a minority</li>
</ol>

3

<p>There's flow trading and prop trading. Flow is market making, those arent traders, those are market makers, but they usually hedge positions so they yea they are sorta traders. Prop traders make the big money and they buy the low, sell at high. Some traders do keep positions for long periods of time. you should just google around to fnd more information.</p>

4

<p>thanks for your answers!! Do you know any good book about traders?</p>

5

<p>Read all three of the market wizard books. The author basically interviews the world's top traders. It's a good read and has tons of useful insight.</p>

6

<p>Is it this one that you are talking about "Market Wizards: Interviews with Top Traders" by Jack D. Schwager?</p>

<p><a href="http://www.amazon.com/gp/product/0887306101/104-3122085-0513564?v=glance&n=283155%5B/url%5D"&gt;http://www.amazon.com/gp/product/0887306101/104-3122085-0513564?v=glance&n=283155&lt;/a&gt;&lt;/p>

<p>I think there is only one??!!! How about Liar's Poker and Reminiscences of a Stock Operator? Is it also about trading?</p>

7

<p>doublementeor there's market wizards and also new market wizards and i think there's one called stock market wizards</p>

<p>liar's poker deals with trading some</p>

<p>when genius failed the collapse of long term capital management is a book about hedge funds</p>

<p>reminisces is a good book too</p>

8

<p>Thanks, dcfca, I am trying to eat all of them before my school starts</p>

<p>I just don't get which one Messenger29 mentioned about</p>

9

<p>There are three books, just search for them on amazon:</p>

<p>Market Wizards
The new market wizards
Stock Market Wizards</p>